Feb 12 U.S. authorities are probing British
interdealer brokers ICAP PLC and R.P. Martin Holdings
Ltd over their role in a global interest rate-rigging scandal,
the Wall Street Journal reported, citing people close to the
The U.S. Justice Department and Commodity Futures Trading
Commission (CFTC) have widened their probe to include the two UK
brokerage firms, the Journal said, although neither firm has
been accused of wrongdoing. ()
ICAP, which disclosed last month that it is under scrutiny
by Britain's Financial Services Authority, has received requests
for information from the Justice Department and the CFTC, the
paper said, citing a person familiar with the matter.
Interdealer brokers help some banks decide their submissions
for the London interbank offered rate, or Libor, and other
benchmarks which are used to price trillions of dollars' worth
Regulators allege that some employees of the two firms were
crucial in helping specific traders rig submissions by banks of
estimated borrowing costs in different currencies, the Wall
Street Journal said.
ICAP chief executive Michael Spencer said last week that the
group was conducting an internal probe into possible interest
rate-fixing and was sharing relevant information with the FSA.
ICAP had suspended one employee and put three more on
The brokerage reiterated those remarks to the newspaper.
Spokesmen for the Justice Department, CFTC and R.P. Martin
declined to comment to the paper.
None of the parties could immediately be reached for comment